What is the Bombay Stock Exchange?
Bombay Stock Exchange Limited is the largest & reputed Indian stock market and the first stock market in the continent of Asia is replete with many such achievements. The honorary index (index) of the Bombay Stock Exchange holds special and superior importance in the stock markets of the world. This stock exchange has a history of more than a hundred years.
There are two major stock exchanges of the Indian stock market, the Bombay Stock Exchange and the National Stock Exchange. The stock market has an important role in the Indian capital market i.e. investment market. It would not be wrong to call both the stock exchanges of the country as the foundation of the Indian economy and capital markets. It is the oldest stock exchange not only in India but in Asia.
The Bombay Stock Exchange Limited Establishment and Founder
The Bombay Stock Exchange Limited was established by Premchand Roychand in 1875, a 19th-century Indian trader. Premchand was known by names like Cotton King and Bullion King. Premchand Roychand was the son of Surat merchant Roychand Deepchand. The Roychand family settled in Mumbai.
Premchand, who specializes in writing and speaking fluent English, started the stockbroker work from 1849. Due to a lot of interest in cotton and bullion business, he did a lot of dominance in the Indian market by doing business in this area. He established the Share and Stock Brokers Association, which later became recognized as the Bombay Stock Exchange. In this way, Premchand Roychand played the role of the founder of the Bombay Stock Exchange.
Working Of BSE
BSE stock exchange of India is huge in terms of a number of listed companies and market capitalization. Before the existence and regulations of the international capital market, BSE had made its own comprehensive rules and regulations for the Indian capital market. It was only after independence that this exchange established the best trading traditions for the Indian capital market. This was appreciated by the capital markets of the world.
Permanent recognition has been granted under the Bombay Stock Exchange Securities Contract Regulation Act 1956. The exchange is governed by a board of directors led by a managing director. The board consists of a group of eminent professionals, representatives of trading members and public representatives who play an important role in its operations.
There is hardly any company in India that has not used BSE for Capital. BSE is considered a symbol of the capital market in India. The BSE Sensex is a benchmark equity index reflecting the country’s economy and finance market movements. BSE has been the leader in many fields, being internationally equivalent.
Bombay Stock Exchange to BSE
In the year 2002, the name of the Stock Exchange, Mumbai was changed to BSE. The BSE introduced Securities Trading in India, replacing the traditional share buying method of the trading ring (the tradition of playing the bell during share listing) in 1995 through BSE online trading (Bolt), the automated trading system was introduced.
By 1997, the network had taken over the entire country. A new history began on 18 February 2002, when Televentures Ltd. ‘S stock listing began with a ringing ceremony at BSE’s International Convention Hall. This tradition continues to this day in the modern-day BSE.